Homeowners Insurance

[Streetcar]

When I refinanced my house, bank wanted $1000 fee to set up escrow along with minimum balance of two payments. I skipped that option

 

[fried1765]

maybe he means a 'rite off' ????

Me thinks..."write off"

 

[fried1765]

Don't forget in some markets the options may be severely limited.

One year I bought a home in the city with a tile roof, stucco siding, sealed eves, city fire hydrant in front, triple pane windows and the home is fully fire sprinklered... my agents of many years... 3 companies I have done business with going back to 1983 were not able to even quote... they were forbidden to do so... no claim history.

Kind of sobering when you think about it.

High Oakland loss/risk potential?

 

[ruffdog]

The only things happening to people's houses around here is : tornadoes, fire, explosion, floods, cars driving into them, big trees falling onto them, and lightening strikes.:confused3:

 

[atsah]

The only things happening to people's houses around here is : tornadoes, fire, explosion, floods, cars driving into them, big trees falling onto them, and lightening strikes.:confused3:

About the same here..

 

[Bird]

Twenty years ago I went to the Farmer's agent office and asked about insurance. He said he only wants to insure "farmers". I told him I had a 10 acre place in the country....it didn't matter, that is not a "farm". Fine...I left.....I wish they would stop mailing me junk ads........:confused2:

When we bought 10 acres in Navarro County, Texas, I went to a local independent insurance agent and insured the place with Farmer's. Later, when I bought my first Kubota, I checked insurance premium rates and his rate with Farmer's was just about the same as the Kubota dealer's KTAC insurance, so I went with my local agent. A year later, I got a letter from Farmer's that the insurance would NOT be renewed. I contacted my agent and he said, you ain't gonna believe this, but Farmer's Insurance has decided to not insure farmer's or their equipment, so I have a whole bunch of ustomers for whom I am trying to find insurance." So I went with KTAC.

 

[Howling]

Me thinks..."write off"

Even with tax write off you are still paying the bill. With a 25% tax rate the $20K health insurance tax deduction saves $5K on taxes. Still out of pocket $15K for the health insurance.

I view insurance as risk management. If I am unwilling or cannot handle the costs of something going wrong will pay someone else to take the risk. Don't mind paying the insurance premiums for the risks to be covered. Happy if I don't have make an insurance claim, because nothing bad happened.

As risks change adjust the insurance coverage. Beater car don't need that same full coverage that new a car needs.

As small business owner I have been paying unemployment insurance on me for over 20 years.

 

[two_bit_score]

Even with tax write off you are still paying the bill. With a 25% tax rate the $20K health insurance tax deduction saves $5K on taxes. Still out of pocket $15K for the health insurance.

I view insurance as risk management. If I am unwilling or cannot handle the costs of something going wrong will pay someone else to take the risk. Don't mind paying the insurance premiums for the risks to be covered. Happy if I don't have make an insurance claim, because nothing bad happened.

As risks change adjust the insurance coverage. Beater car don't need that same full coverage that new a car needs.

As small business owner I have been paying unemployment insurance on me for over 20 years.

As a small business owner you should also be carrying Worker's Comp on yourself. But, I'm sure you knew that already.



TBS

 

[Howling]

As a small business owner you should also be carrying Worker's Comp on yourself. But, I'm sure you knew that already.



TBS

I know about that wide range of insurances and taxes the go with running a business. Many bills every year. Others in this thread have commented on those types and costs.

The state requires unemployment insurance for every employee. But makes it nearly impossible for the business owner to be laid off and collect unemployment.

 

[ultrarunner]

Ultra, it sounds like you were a bad penny for those agents.

Farmers was set up as a reciprocal exchange and was a really customer oriented company for many years. Their agents were first rate people.

After their stock was bought up by a British company then finally Zurich their whole approach changed. They became like any other insurance company. They suck every cent out of customers that they can and pay as little as possible on claims.

All insurance companies spend lavishly at the state legislatures to get laws passed so they can tell customers they can稚 pay you because it痴 the 斗aw that prevents them from doing so.



TBS

I know they spend a ton on TV spots every night...

Several friends thought a career in Insurance would suit them and all have left.

The older guy with the long established agency... he was very civically involved... Rotary and Kiwanis, sponsored you baseball, etc... was totally blindsided.

He was paid for his book of business but only if he goes quietly... his business was assigned to a agency 60 miles away that only recently opened a tiny office here...

It speaks volumes when career Brokers/Agents with decades in building a business speak so badly off the record.

In my case the Auto Club stepped up and it was really painless... if I am going to a faceless big company it might as well be one with strong ties to California... and not one that pulls out and I doubt CSAA can leave... at least this is my thought.

 

[ultrarunner]

High Oakland loss/risk potential?

Very well could be blatant Redlining except they were NOT excluding Zip Codes as they did in the past but bump the policy minimum which basically excluded the same Zip Codes based on Value.

When this happened a 500k home was 3 to 4 times the cost of a median priced home.

Lucky for me I had ties to Farmers and moved over about a dozen policies...

I asked the Farmer's agent if this was going to be a problem and he said no... each Agent has a loss ratio and his is so low it puts him in the position to write policies lesser ranking agents could not... and, in all the years I have been with him not a single loss.

 

[ultrarunner]

When we bought 10 acres in Navarro County, Texas, I went to a local independent insurance agent and insured the place with Farmer's. Later, when I bought my first Kubota, I checked insurance premium rates and his rate with Farmer's was just about the same as the Kubota dealer's KTAC insurance, so I went with my local agent. A year later, I got a letter from Farmer's that the insurance would NOT be renewed. I contacted my agent and he said, you ain't gonna believe this, but Farmer's Insurance has decided to not insure farmer's or their equipment, so I have a whole bunch of ustomers for whom I am trying to find insurance." So I went with KTAC.

Same here for farmers I know... thankfully the local Co-Op was able to connect members with Insurance wanting their business.

 

[ultrarunner]

Even with tax write off you are still paying the bill. With a 25% tax rate the $20K health insurance tax deduction saves $5K on taxes. Still out of pocket $15K for the health insurance.

I view insurance as risk management. If I am unwilling or cannot handle the costs of something going wrong will pay someone else to take the risk. Don't mind paying the insurance premiums for the risks to be covered. Happy if I don't have make an insurance claim, because nothing bad happened.

As risks change adjust the insurance coverage. Beater car don't need that same full coverage that new a car needs.

As small business owner I have been paying unemployment insurance on me for over 20 years.

My Grandfather said Insurance should be used to make the unbearable bearable... he always believed in high deductibles

 

[Bird]

My Grandfather said Insurance should be used to make the unbearable bearable... he always believed in high deductibles

And my Grandfather said he didn't like insurance because it was betting against yourself. You're betting something bad will happen and the insurance company is betting it won't.:laughing:

 

[two_bit_score]

And my Grandfather said he didn't like insurance because it was betting against yourself. You're betting something bad will happen and the insurance company is betting it won't.:laughing:

I was surprised when I found out that my in-laws who owner quite a bit of rental property never carried any physical loss insurance on anything once it was paid for. They never had a big loss to any thing they owned. Hail damage to roofs was just considered normal wear and tear and would be dealt with in the course of business. They never experienced any catastrophe loss that I knew of and probably saved a fortune in insurance premiums. They also frequently had $50k in cash at home at almost any given time.

I recall once being at their home, which was very modest, and mentioning that their daughter and I were going on a trip to New Orleans on Monday when the bank opened and we could get some cash. My FIL told me that we should go then and offered to let us have his brand new Oldsmobile for the trip and also asked if we needed a couple thousand cash. They frequently purchased rental property without any bank financing.


.

 

[two_bit_score]

I know about that wide range of insurances and taxes the go with running a business. Many bills every year. Others in this thread have commented on those types and costs.

The state requires unemployment insurance for every employee. But makes it nearly impossible for the business owner to be laid off and collect unemployment.

You may be missing my point and confusing Workers Compensation with Unemployment Insurance.

 

[Jim Nelson]

Ten years ago we bought our current property and I called our Allstate agent to add the new property.She asked if we wanted to cancel the policy on the old property and I said no,we are going to rent it and live in the new place. She explained that it would require a different policy since it was not going to be our primary residence any longer so I asked what I needed to do to make this happen. She said, nothing,I will handle it all here for you. We were busy getting the new place ready and moving so I forgot about the insurance, assuming that she was good to her word and it had been handled.We had been insured with Allstate for 30 + years with no problems.

Everything went well the first year renting the old place then our first tenants moved, as they had bought their own home. The second tenants looked great on paper so we let them move in. This was all done through a property management co.and the did, what appeared to be a very thorough background check and recommended them. Just before it was time to renew the lease agreement there was a water leak in the master bath which somehow went un noticed for some time and the mgmt. co. sent their plumber out. The leak was an easy fix but there was extensive damage to the walls and floors to the bathroom and the room next to it plus a tremendous amount of mold.It was also filthy and infested with roaches.

The total repair bill came to over $17,000 which I turned into the insurance and then found that the agent had not changed the policy and we were S.O.L. I went to regional and they of course backed the agent and since I had nothing in writing ,they pretty much told me to go pound sand.

I immediately checked around and found the local Farmers agent to be the most highly thought of guy around here so I went to him and transferred all of our property and cars to him.Allstate wasn't a bit concerned about losing a 30 year customer and we never heard a word from them.

In talking to the Farmers agent I learned that since our initial agent had retired and his clients were transferred to different agents the new agents only got a portion of the commission and normally didn't get priority treatment like clients they had signed up.

I know in todays world you have to cover your keister by having insurance but I am much more attentive than I used to be and don't trust any of them.

 

[Howling]

You may be missing my point and confusing Workers Compensation with Unemployment Insurance.

I am fully aware of the both of those insurance types. They are just 2 of the many insurance types needed to run a business.

Worker comp is if you get hurt on the job.

Unemployment is if you get laid off. Typically is difficult for business owner to get laid off and actually collect benefits. But I have been required to pay in to the insurance fund for over 20 years.

 

[two_bit_score]

Small business owners who carry work comp on employees should always add themselves to the work comp policy. Work comp provides lifetime medical for injuries on the job.